Minting is the process of creating new KUSD tokens by supplying part of USDC and DOPX according to the Collateral Ratio. The value of assets needed to be minted will be worth $1 at the time of minting. The collateralized USDC will be used to provide value, while DOPX will be burned from the system.
Redemption is the process of retrieving USDC and DOPX by supplying KUSD to burn. The ratio of USDC and DOPX are variable depending on the Collateral Ratio, but will be worth $1.
Therefore, it is possible to say that you need $1 to mint KUSD, and will get $1 from redeeming KUSD. In the process, DOPX will be newly minted from the system.
Minting and redemption are one of the mechanisms that help keep the price of KUSD to the peg by opening opportunities for arbitrageurs to arbitrage and gain profit from the difference of the market price from the peg.
When the KUSD price increases above $1, anyone can make a profit by minting KUSD worth $1 and immediately selling KUSD to make a profit from the difference.
When the KUSD price decreases below $1, anyone can make a profit by buying KUSD at that moment and immediately redeem KUSD worth $1 to make a profit from the difference.
However, this still presents the chance that the KUSD price is far off peg in a small period of time, which creates a negative feedback loop for people to keep selling KUSD.
At this point, the platform will dynamically adjust the Collateral Ratio to use more stablecoins in order to gain trust.